NATIONAL OPEN UNIVERSITY OF NIGERIA

JOS STUDY CENTRE

(GST 302) BUSINESS CREATION AND GROWTH
BUSINESS PLAN ON ESTABLISHING A SOAP COMPANY AS IT
RELATES TO SUSTAINABLE DEVELOPMENT GOAL ON GOOD
HEALTH AND WELL BEING
BY

CHILAKA DORCAS KOSBET MACHIEF THOMAS ISHAYA REBECCA

OGECHI HAPPINESS CELINA OFUKOWOICHO RITKATMWA
NOU203099387 NOU193144496 NOU211186861 NOU213089090 Jos NOU203040201
Jos Study Centre Jos Study Centre Jos Study Centre Study Centre Jos Study Centre
B.Sc. Criminology B.Sc. PUBLIC B.Sc. PULIC B.Sc. Economics B.Sc. Criminology
and Security Studies ADMINISTRATION ADMINISTRATIO 07067087502 and Security Studies
90968794226 00839888322 N nou213089090@noun. 07068222173
nou203099387@noun. nou193144496@noun. 08038147004 edu.ng nou203040201@noun.
edu.ng edu.ng nou211186861@no edu.ng
un.edu.ng
Business Overview
Soap is a universal product that can be found in all homes, canteen, laundries, hotels and toilets et al.
Soaps are used for washing and bathing hence the demand for soap is hardly affected by economic
meltdown due to the important role the product plays in our daily lives.
Soap production companies are involved in making bar soaps, liquid soaps, and detergent et al with
different scent and packaging. Major players in the soap production industry do not just serve the
market within the State or country they operate from, but also international markets.
The equipment needed for soap making include; the soap making machine, heat resistance plastic or
stainless steel pitcher with lid, big stainless steel or plastic spoon, Stainless steel measuring spoons,
measuring cups, small beakers, stick blender (for saponification process), a soap mold, soap pot,
rubber spatulas, large stainless steel or plastic ladle, protective goggles, protective rubber hand gloves,
Quick reading and accurate thermometer. You will also need supply of lye solution, oils, additives
(colorants), and fragrances, amongst others.
The Soap Production industry is indeed a growing and thriving sector of the economy of most
countries of the world and they generates several millions of US dollars annually from several
registered and licensed small – scale, medium scale and big soap production companies scattered all
around Nigeria. The industry is responsible for the employment loads of people directly and indirectly
all around the world.
Over and above, the soap production industry is a profitable industry and it is open for any aspiring
entrepreneur to come in and establish his or her business; you can chose to start on a small scale
servicing a community or you can chose to start on a large scale with a robust distribution network all
across major cities in America and even in within the West African Coast.
Our Vision Statement
Our vision is to establish a standard Soap Production Company whose product will not only be sold in Jos, but also
throughout all the states in Nigeria and in other parts of World.
Our Mission Statement
Our mission is to establish a standard and world class Soap Production Company that in our own capacity will favorably
compete with leaders in the industry. We want to build a soap production business that will be listed amongst the top 10
soap and detergent brands in the Nigeria. We want to build a household brand name.
Our Business Structure
Debby Soap Production Company is a business that is established with the aim of competing favorably with other
leading soap brands in Nigeria. This is why we will ensure that we put the right structure in place that will support the
kind of growth that we have in mind while setting up the business.
We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work
to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be
based on their performance for a period of five years or more depending how fast we meet our set target. In view of that,
we have decided to hire qualified and competent hands to occupy the following positions;
Chief Executive Officer (Owner)
Plant Manager
Human Resources and Admin Manager
Sales and Marketing Manager
Accountants / Cashiers
Soap Making Machine and Packaging Operators
Customer Services Executives
Distribution Truck Drivers
Soap Making Business Plan – MARKET ANALYSIS
•Market Trends
The trend in the soap and detergent production industry is such that, any product that has been proven to be reliable and
healthy tends to sell more and determine the direction of the market for such industry.
You would quite agree that there are loads of soap brands out there in the market that you may have   to compete with.
One of the things that you need to do to get your own fair market share is to come out with a creative packaging for your
soap and detergent and also come up with different fragrance and sizes. You might just have to consult a brand expert if
you truly want to make it big with your soap making company.
Lastly, another trend in the soap production industry is that leading soap and detergent production companies ensure that
they get well – known celebrity to become their brand ambassador. With that, it is easier for them to be able to sell their
products and have an active presence in the industry.
•Our Target Market
When it comes to selling soaps, there is indeed a wide range of available customers. In essence, our target market can’t
be restricted to just a group of people or organization, but all those who resides in our target market locations.
In view of that, we have conducted our market research and we have ideas of what our target market would be expecting
from us. We are in business to engage in the production and wholesale distribution of soaps and detergents to the
following groups of organizations;
•Hotels
•Restaurants and Canteens
•Event Planners, Parties and Corporate Functions
•Corporate Executives
•Government Officials
•Business People
•Celebrities
•Pregnant women / Expectant mothers (for their babies)
•Military Men and Women
•Sports Men and Women
•Students
•Laundry Owners
Soap Making Business Plan – SWOT Analysis
We are quite aware that there are several soap production companies both large and small in America, whose products can
be found in every nooks and crannies of the country, which is why we are following the due process of establishing a
business so as to compete favorable with them.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to
maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped
to confront our threats. Debby Soap Production Company employed the services of an expert HR and Business Analyst
with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a business model that
will help us achieve our business goals and objectives.
This is the summary of the SWOT analysis that was conducted for Debby Soap Production Company;
•Strength:
Aside from quality and variety of soaps and detergents that we make, part of what is going to count as positives for Debby
Soap Production Company is the vast experience of our management team, we have people on board who are highly
experienced and understands how to grow business from the scratch to becoming a national phenomenon.
So also our large national distribution network and of course our excellent customer service culture will definitely count as
a strong strength for the business.
•Weakness:
A major weakness that may count against us is the fact that we are a new soap production company and we don’t have the
financial capacity to engage in the kind of publicity that we intend giving the business.
•Opportunities:
The opportunities for soap production companies are enormous. This is due to the fact that soap is a universal product that
can be found in all homes, canteen, laundries, hotels and toilets et al. As a result of that, we were able to conduct a
thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for
soaps and detergents and also to create our own new market. We know that it is going to requires hard work, and we are
ready to give all it will take to achieve it.
•Threat:
We are quite aware that just like any other business, one of the major threats that we are likely going to face is economic
downturn and unfavorable government policies. It is a fact that economic downturn affects purchasing power. Another
threat that may likely confront us is the arrival of a new soap production company in same location where ours is located.
Our Competitive Advantage
A close study of the soap and detergent production industry reveals that the market is becoming much more
competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and
proactive if you must survive in this industry. We are aware of the stiffer competition and we are well
prepared to compete favorably with other soap production companies in Bauchi and Nigeria. Debby Soap
Production Company is launching a standard soap and detergent production brand that will indeed become
the preferred choice for businesses and households in Plateau State and other states in Nigeria where we
intend marketing our soap and detergents.
Part of what is going to count as competitive advantage for Cites® Soap Production Company is the vast
experience of our management team, we have people on board who are highly experienced and understands
how to grow business from the scratch to becoming a national phenomenon. So also our large national
distribution network and of course our excellent customer service culture will definitely count as a strong
strength for the business.
Lastly, our employees will be well taken care of, and their welfare package will be amongst the best within
our category (startups soap and detergent production companies) in the industry, meaning that they will be
more than willing to build the business with us and help deliver our set goals and achieve all our aims and
objectives. We will also give good working conditions and commissions to freelance sales agents that we will
recruit from time to time.
•Start – Up Expenditure (Budget)
Starting a standard soap and detergent production company is indeed a capital intensive business. This is so because the
amount required in setting – up a standard soap and detergent production plant is not a piecemeal. The bulk of the start –
up capital will be sent on leasing or acquiring a facility and also in purchasing soap making equipment and accessories.
Aside from that, you are not expected to spend much except for purchase and servicing of distribution vans, paying of your
employees and utility bills et al. We know that no matter where we intend starting our soap and detergent production
business, we would be required to fulfill most of the items listed below;
•The Fee for registering the business (venture) in Nigeria – #30,000
•Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other
software) – #30,000
•Marketing promotion expenses for the grand opening of Debby Soap Production Company – 150,000
•Cost for hiring Business Consultant – #50,000
•Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – #500,000
•Cost for payment of rent for 12 month and renovation inclusive – #500,000
•Other start-up expenses including stationery and phone and utility deposits – #30,000
•Operational cost for the first 3 months (salaries of employees, payments of bills et al) – #500,000
•The cost for start-up inventory (chemicals and packaging materials, lye solution, oils, additives (colorants), and fragrances
et al) – #300,000
•Cost for store equipment (cash register, security, ventilation, signage) – #100,000
•Cost of purchase of soap making machine, heat resistance plastic / stainless steel pitcher with lid, big stainless steel / plastic
spoon, Stainless steel measuring spoons, measuring cups, small beakers, stick blender (for saponification process), soap pot,
rubber spatulas, large stainless steel or plastic ladle, protective goggles, protective rubber hand gloves, Quick reading and
accurate thermometer – #1,500,000
•The cost for the purchase of furniture and equipment (Computers, Printers, Telephone, Fax Machines, tables and chairs et
al) – #300,000
•The cost of launching a website – #50,000
•The cost for our opening party – #50,000
•Miscellaneous – #30,000
We would need an estimate of #3,190,000 to successfully set up a medium scale but standard soap production
business. Please note that this amount includes the salaries of all the staff for the first 3 month of operation